Venture capitalists invest record funds in US technology

Venture Capitalists, Monitoring and Advising

Venture capitalists are widely regarded as financial intermediaries who provide not just financing, but also advice and monitoring. This view rests on solid empirical foundations: according to Gorman and Sahlman (1989), for example, lead venture investors visit each portfolio company an average of 19 times per year, and spend 100 hours in direct contact (on site or by phone) with the company. V...

Challenges facing venture capitalists in developing economies

Investment Criteria of Singapore Venture Capitalists

Venture capital industry in Singapore is of recent origin. However, funds under management in Singapore have grown from S$ 45 million in 1983 to S$ 7300 million in 1995. These developments together with the recent announcement of government’s vision of Singapore becoming a hub for venture capital in the region, provides an opportunity for an examination of the venture capital industry in Singap...

Researchers of Venture Capitalists’ Decision Making, Beware!

Researchers of venture capitalists’ decision making must be aware of potential biases and errors associated with self reported data especially in light of this study’s findings that venture capitalists’ lack introspection into the policies they “use” to assess likely profitability. Surprisingly, venture capitalists demonstrate some introspection into the policies they “use” to assess probabilit...

How Early Stage Entrepreneurs Evaluate Venture Capitalists

This paper is the first attempt to study the process and criteria used by entrepreneurs in evaluating venture capitalists. Selection process involves issues such as the time invested in gathering information, the sources of information, and the number of venture capitalists considered. Selection criteria are split into four groups: (1) Valuation; (2) Value-Added Services; (3) Reputational Facto...